France Mobilizes More Than €1 Billion After 2026 Drought Hits Farm Production

France has announced an agricultural support package worth more than €1 billion after an exceptionally hot and dry summer damaged production across much of the country.

The Agriculture Ministry says 65 percent of French territory experienced unprecedented drought conditions during the summer, with water restrictions imposed in 95 departments and many regions reporting average yield losses around 50 percent.

Livestock farms have also been affected by forage shortages. The ministry says forage stocks are more than 50 percent below normal in many areas, increasing pressure on feed availability and farm cash flow heading into the next production cycle.

The package combines compensation and production restart measures. It includes expected national solidarity compensation, support for uninsured losses, local property tax relief and a €235 million agricultural restart fund intended to help farms finance feed, forage, seed, plants and other inputs.

The government is also extending support for nitrogen fertilizer purchases and agricultural diesel while allowing selected administrative flexibility where drought has made normal compliance difficult.

For suppliers and agricultural businesses, the measures are likely to influence autumn demand for feed, seed, fertilizer and other inputs. The program is also a reminder that climate shocks increasingly affect not only yields but working capital, input procurement and the timing of the following season.